What is Holidays Act remediation?
It’s the process of finding where your payroll hasn’t complied with the Holidays Act 2003, recalculating what each current and former employee should have been paid, paying the difference, and fixing the cause so it doesn’t happen again.
Why do so many employers get holiday pay wrong?
The Holidays Act often requires employers to compare several calculations, such as ordinary weekly pay and average weekly earnings, and pay the higher. Payroll systems that aren’t set up for this underpay without anyone noticing, especially with variable hours, overtime or allowances.
Which employees are most likely to be underpaid?
Usually permanent and fixed-term staff who work variable or unpredictable hours, work above their contracted hours, or earn allowances, overtime or commission on top of their base pay.
Can you handle complex workforces?
Yes. Complex workforces are where we do our best work: 24/7 rosters, shift work, variable and casual hours, multiple employment agreements, allowances, overtime and commission, and staff who change roles or hours over time. HART is configured for complex working arrangements, so every pattern is calculated to the legislation.
Who do you work with?
New Zealand businesses across every industry, typically with more than 100 staff. We work with finance, HR and executive leaders, and our experience is strongest where rosters, shifts and allowances make holiday pay complex.
Do you work with accounting, consulting and legal firms?
Yes. Firms that advise on the Holidays Act partner with us when their clients need specialist recalculation. As a ResolvePay Accredited Partner, your firm leads the client relationship and the advice, while our data analysts and HART carry out the recalculations behind it. Your clients get specialist, auditable results, and you extend your service without building the capability in-house. Talk to us about becoming an accredited partner.
Which service do we need?
If you don’t yet know the size or nature of the problem, start with a review. If the methodology is already set, choose recalculations only. If you want it handled from start to finish, choose the full review and recalculations.
Can you help with a Labour Inspectorate enforceable undertaking?
Yes. We have experience supporting employers through enforceable undertakings with the Labour Inspectorate, and can run the review and recalculations needed to meet them.
How far back are we legally required to pay?
Generally at least six years, in line with Labour Inspectorate guidance, plus anything that accrues while the fix is put in place. Some employers choose to go further. HART handles whatever period you and your lawyers settle on.
What if our old data is incomplete?
Common, and solvable. We apply agreed assumptions or change the scope period. You make the call.
What does the Employment Leave Act mean for us?
It replaces the Holidays Act on 6 August 2028. What you owe under the current Act still has to be paid, and leave balances convert to hours at the switch, so errors carry across unless fixed first.
Can you help us choose or move to a new payroll system?
Yes. We help with vendor selection and migration, so your new system is set up to calculate leave correctly from day one. That matters most ahead of the Employment Leave Act, when leave balances must be converted from days to hours.
Where is our data held?
In New Zealand, on any payroll system you use. No offshore resources.
Should we provision for this in our accounts?
That’s a call for you and your auditors. We give you a quantified liability and a documented method they can review, so the number stands up.
Can you model different scenarios before we decide?
Yes, and it’s one of the things that sets us apart. HART lets us model multiple what-if scenarios and methodologies side by side, such as including or excluding certain allowances, payments or periods, so you can see exactly how each choice changes the liability. You get a clear figure for every option and can choose the approach that best fits your risk tolerance and commercial position. You’ll know your numbers before you commit.
Can we offset overpayments against what we owe?
Not automatically. We show underpayments and overpayments side by side, but recovering or offsetting overpayments has legal limits. Take legal advice before deciding how to treat them.
Can the review be done under legal privilege?
Yes. Many employers engage us through their lawyers so the review sits under legal privilege. We're happy to work that way.
What will it cost?
Pricing depends on the scope of the work. The main factors are the number of employees, the number of employment contracts and agreements, how many payroll systems are involved, the lookback period, and the complexity of your rosters, allowances and data. Every engagement gets a fixed quote after an initial scoping call, so you know the full cost before you commit. If you’d like to start small, a review only is the lowest-cost way to understand where you stand.
How long does the process take?
With timely decisions, a full review, recalculation and settlement can be completed in as little as three months. The biggest factor is usually decision-making on your side, such as agreeing the methodology and signing off assumptions, followed by how quickly your payroll data can be extracted and how clean and complete it is. We agree a timeline with your fixed quote and keep things moving, so you know when to expect results.